Sunday, December 14, 2008

Unit Trust Investment - 5 Reasons Why I Invest in Unit Trust

I you read my earlier post on 'My First Unit Trust Investment - Public Dividend Select Fund', I did mentioned that before I decided to place my first unit trust investment, I done some online research on unit trust and mutual fund investment. I would be happy to share some of the findings, which later become the reasons why I invested in unit trust.

Here are the 5 reasons why I invested in unit trust:
1) Moderate Risk
I am not a high risk taker. I consider unit trust investment provides me with the right risk level, which is moderate risk. This is in compare to fixed deposit which is very low risk and share trading which is very high risk.

2) Diversification of my investment portfolio
If you read investment books or articles, I realised one of the thing which always mentioned by the authors or financial planning advisor is 'never put all your eggs in one basket'. So, unit trust is another basket for my eggs.

3) Higher return of investment
Over the long run (between 3-10 years, depending on fund performance), unit trust provides much higher return compare to fixed deposit.

4) Affordable initial investment
For most unit trust funds in Malaysia, the initial investment is RM1K, which is affordable for wage earner like me. Most additional investment is minimum RM100 per transaction. I would consider this as an easy and affordable learning step for those who wish to try on unit trust investment.

5) Convenient investment method
For initial investment, you just need to fill in the form and prepare the amount (cash or cheque) you wish to invest. You may pass it to your unit trust consultant or go to the respective unit trust offices to proceed with the investment. Within about 2 weeks time, they'll send you the details of your unit trust investment details. For additional investment, you may repeat the procedure above or arrange for a Standing Instruction (SI) with your banks to transfer a certain amount from your banks account to your unit trust account on monthly basis.

The above 5 reasons is convincing enough for me to explore further on unit trust investment. Since my first unit trust investment, I had also invested in other unit trust funds.
Feel free to share you unit trust investment reason with me.
*Always remember: investment involves RISK*


  1. Hi Yan,

    I find your blog very interesting. I am new to this, both financial matters and blogging ;).
    The next question I have is what unit trusts should I invest with as a starter ?


  2. hi angie, thank you and it's great that you dropped by :) you asked a simple yet difficult to answer question :) There are quite a number of unit trust firm in Malaysia which means that there's a huge range of funds you can choose from. For novice investors, there are certains factors which need to take into considerations before placing your investment. I will cover this in my coming posts. As for me myself, it's quite a long yet interesting learning process.